The S&P 500 is back to testing all-time highs yet again!
It was just two weeks ago the market was doing the same thing it did today – run it higher right into the close and testing all-time highs but not breaking through.
The following shortened week, it sold off four straight days, but this week?
Let’s rally it five straight days!
Of course if that pattern continues into next week, we are looking at a horrendous week of trading.
But right now, the bulls have the ball in their court, with little in the way of potential bad news until Wednesday when the FOMC Statement drops and what has become one of the most irritating, annoying and self absorbed moments for the stock market: The FOMC Presser.
Wouldn’t be surprised if we gapped beyond all-time highs
That’s happened a lot with stocks and the indices, when resistance becomes too formidable. Instead of breaking through during regular trading hours, Wall Street just runs it up in the futures market overnight and let the indices gap above the resistance so it doesn’t have to deal with it any more.
Monday sets up well for that!
Personally, I’ll look for more opportunity, probably in the tech space, just in case we get a rotation away from the sectors not influenced by the mega caps and back into tech itself.
Come Tuesday and Wednesday, I’ll probably play it a lot more safer and hold off of new positions with the FOMC looming. The strange development here is the rising probability of a 50 basis point rate cut, which would be utterly stupid, but also has the potential to cause panic that the Federal Reserve knows something that the market isn’t aware of.
Right now those odds of of a 50bps rate cut stand at 45%, which makes it practically a 50/50 decision going into FOMC and something we haven’t seen in years!
Buckle up, because next week is going to be a lively time testing all-time highs!
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Hope to see you in there!
